KOSTT Transmission Grid Strengthening Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The EBRD is considering providing a corporate loan of up to € 29 million to the public service company Transmission, System and Market Operator J.S.C. (KOSTT) to finance the rehabilitation and upgrades of selected substations, transformers and electricity transmission lines to strengthen reliability of the national HV grid and directly facilitate significant increase in implementation of RES capacities and the digitalization of the Market Operator activities. The investment will be additionally supported through a €5 million investment grant from the Danish Cooperation Fund.

Project ID 55387

Status Exploratory

Location

Kosovo

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Shaban Neziri
Shaban.neziri@kostt.com

Project ID 55387

Status Exploratory

Location

Kosovo

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

19 Nov 2025

Disclosure date

30 Sep 2025

Project Description

Project Objectives

The project will significantly enhance Kosovo's electricity network, increasing its capacity to accommodate an additional 300MW new energy capacity. It will enable the connection of planned renewable energy installations that are currently not feasible due to limitations within the grid and reduce curtailment risk of existing renewable energy installations and enhance market operations by digitalizing them to facilitate electricity trade. Furthermore, the project will assist the company in aligning with international best practice regarding system reliability and flexibility.

Transition Impact

ETI score: 70

The Project is consistent with EBRD's Country Strategy for Kosovo placing emphasis on promoting and supporting sustainable development of the energy sector. The expected transition impact of the project stems from "Green" and "Resilient" aspects. The project will ensure the rehabilitation of substation and replacement of transformers as well as transmission lines which will lead to improved energy efficiency and increased system reliability. The project will enable integration of additional 300MW new RES capacities across the country.

Client Information

OPERATOR SISTEMI TRANSMISIONI DHE TREGU - KOSTT SHA

KOSTT, Transmission, System and Market Operator J.S.C, is a joined stock company in Kosovo and owned 100% by the Republic of Kosovo and shareholder rights are exercised through the Ministry of Economic Development. Its main responsibilities include operation and maintenance of the Kosovo electricity transmission system and market. KOSTT is also the PPA off-taker for renewable energy sources.

EBRD Finance Summary

EUR 29,000,000.00

Total Project Cost

EUR 34,000,000.00

Additionality

By bringing together essential long-term financing and technical support, the initiative creates a comprehensive package that advances the country and regional green transition. EBRD's involvement facilitates access to financing otherwise notavailable in the local market and supports the adoption of international best practices in system reliability and flexibility. Furthermore, the Bank supported expertise will assist KOSTT in strengthening its environmental and social management, procurement and implementation capacities

Green assessments

Technical Cooperation and Grant Financing

The project will be implemented in accordance with the EBRD Procurement Policies and Rules (PP&R). The EBRD is providing technical assistance funds to support KOSTT in with the project preparation for Environmental and Social, Technical, and Legal aspects. Furthermore, the Bank is also considering providing technical assistance funding to support KOSTT in preparing a feasibility study for the design of a digital platform under the Market Operator function within KOSTT. This funding is intended to facilitate the implementation of the Project and strengthen KOSTT's institutional capacity. The Technical Assistance will be jointly financed by the Danish Cooperation Fund and internal EBRD funds for up to EUR 6 million.

Company Contact Information

Shaban Neziri
Shaban.neziri@kostt.com

Implementation Summary

PSD Last Updated

30 Sep 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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KOSTT Transmission Grid Strengthening Project

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

Implementation Summary

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

KOSTT Transmission Grid Strengthening Project

Overview

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Environmental and Social Summary

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

Implementation Summary

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)